In a recent statement, the Akwa Ibom State Council of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has highlighted a critical gap in the state’s petroleum supply chain infrastructure—the absence of a Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) licensed laboratory.
This deficiency, as voiced by Comrade Sam Osung, Chairman of the Akwa Ibom State Council of NOGASA, is causing significant operational and financial challenges for local petroleum suppliers.
The lack of a local laboratory authorized by the NMDPRA for quality investigation is not only slowing down the supply chain but also leading to considerable financial losses for suppliers.
This scenario becomes particularly problematic when security agencies, as part of their regulatory duties, intercept petroleum products for quality analysis. With no hydrocarbon laboratory within Akwa Ibom, samples must be sent to distant cities like Port Harcourt or Enugu for testing.
This process is not only time-consuming but also leads to product degradation and financial loss due to evaporation and market price fluctuations.
According to Comrade Osung, this situation has dire consequences for both the supply side and the end users. Suppliers are facing capital erosion and mounting debts, with many nearing the brink of business closure.
On the consumer end, these disruptions could lead to artificial scarcity, operational halts in industrial activities, and inevitable price hikes, ultimately burdening the common man.
Comrade Osung’s plea to the government is for the urgent establishment of a hydrocarbon laboratory in Akwa Ibom. Such a facility would facilitate quicker and more efficient product testing, aiding not just the business community but also supporting the security agencies in their mandate to ensure the supply of quality petroleum products.
He emphasizes the importance of the petroleum industry to the national economy and acknowledges the efforts of security agencies in maintaining a clean slate for Akwa Ibom in terms of illicit practices within the sector.
While supporting the security agencies’ efforts to monitor the quality and origin of petroleum products, Comrade Osung calls for an acknowledgment of the industry’s dynamics, especially in light of recent policy changes like the deregulation of certain petroleum products.
He stresses the need for a balanced approach that ensures compliance without impeding the operational efficiency and financial viability of suppliers.
This call to action aims not just to address an operational challenge but to avert a potential crisis in the petroleum supply chain that could have widespread ramifications for the state’s economy and its residents.
